AFFIN Group sees significant opportunities in housing, small and medium enterprise (SME) financing, infrastructure development and Islamic finance following the announcement of Budget 2027, which it described as a prudent fiscal plan aimed at sustaining economic growth while addressing cost-of-living pressures.
AFFIN Bank Group Chief Executive Officer Datuk Wan Razly Abdullah said the RM510 billion budget, which includes RM459.8 billion in federal operating and development expenditure, reflects the government’s commitment to balancing economic expansion with fiscal discipline.
He welcomed the government’s continued fiscal consolidation efforts, with the fiscal deficit projected to narrow to 3.3% of gross domestic product (GDP) in 2027 from 3.6% in 2026 and 3.7% in 2025.
Efforts to improve revenue collection and manage public spending prudently remain important, while ensuring sufficient flexibility to pursue strategic investments and development projects that support sustainable growth, he said.
With Malaysia’s economy projected to expand between 4.2% and 5.2% in 2027, Wan Razly believes the country’s transition towards higher-value industries, technological innovation and greater regional integration will create opportunities to strengthen productivity and competitiveness.
RM20 Billion Housing Guarantee To Support First-Time Buyers
Wan Razly highlighted the RM20 billion housing financing guarantee under Syarikat Jaminan Kredit Perumahan (SJKP) as a key initiative to improve homeownership accessibility.
The scheme is expected to benefit 80,000 first-time homebuyers, particularly those requiring greater access to housing financing.
He said AFFIN remains committed to supporting homeownership through financing solutions tailored to different income groups and changing customer needs.
The group also welcomed the government’s decision to increase allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion in 2027, alongside additional tax relief for middle-income households.
These measures are expected to strengthen disposable income, support household consumption and sustain domestic economic activity.
RM57 Billion Financing Guarantees To Boost SME Growth
On the business front, Wan Razly said Budget 2027’s measures to support micro, small and medium enterprises (MSMEs) would help strengthen financial flexibility, encourage investment and improve competitiveness.
MSMEs contributed 39.7% of Malaysia’s GDP in 2025 and accounted for 48.7% of total employment, underscoring their importance to the domestic economy.
He welcomed the one-percentage-point reduction in MSME income tax rates, which is expected to benefit approximately 300,000 businesses.
The government has also expanded loan and financing guarantee facilities to RM57 billion in 2027, alongside RM3.5 billion allocated for trade and industry initiatives, including SME development programmes.
Wan Razly said access to alternative financing, including private equity and other forms of growth capital, could complement traditional banking facilities, particularly for businesses seeking to expand, innovate and enter regional markets.
He pointed to AFFIN’s recent US$400 million financing collaboration with the International Finance Corporation (IFC) as part of the group’s efforts to broaden financing accessibility.
The collaboration focuses on eligible MSMEs, including women-owned businesses and enterprises operating in underserved regions.
Sabah And Sarawak Investments To Unlock Financing Opportunities
AFFIN also welcomed the government’s continued emphasis on development in East Malaysia, with federal allocations of RM18.7 billion for Sabah and RM16.2 billion for Sarawak in 2027.
Wan Razly said sustained infrastructure and connectivity investments would support more balanced regional development while opening up new business and financing opportunities.
He noted that AFFIN’s established presence in East Malaysia positions the group to participate in financing opportunities arising from major infrastructure and energy projects.
These include the Pan Borneo Highway Sabah, Sarawak-Sabah Link Road and new gas developments, which are expected to generate demand for financing across construction, logistics, energy and related infrastructure activities.
Islamic Finance, Tourism Among Emerging Growth Areas
Wan Razly also described the proposed introduction of tokenised retail savings sukuk as a positive development for Malaysia’s Islamic finance industry.
The initiative is expected to broaden public access to investment opportunities while strengthening Malaysia’s position as a leading Islamic finance centre.
He said it could create opportunities for AFFIN Islamic to support growing demand for sukuk and Shariah-compliant financing, particularly in high-growth sectors such as energy, utilities and data centres.
Meanwhile, the extension of the Visit Malaysia campaign into 2027, supported by RM935 million allocated for tourism and culture, is expected to stimulate economic activity across the hospitality, retail and services sectors.
Major events such as the SEA Games and Langkawi International Maritime and Aerospace Exhibition (LIMA), together with improved connectivity through the East Coast Rail Link (ECRL) and Johor Bahru-Singapore Rapid Transit System (RTS) Link, are expected to provide additional support to tourism-related businesses.
Wan Razly said improved access to financing and digital payment solutions would enable businesses, including those in Sabah and Sarawak, to capitalise on increased tourism activity.
Overall, he said Budget 2027 provides opportunities to improve household financial well-being, expand homeownership, strengthen businesses and encourage greater participation in emerging economic sectors.
Looking ahead, AFFIN will continue focusing on delivering relevant financial solutions, supporting enterprise development and helping more Malaysians benefit from the country’s economic progress, he added.
